Why Marqeta Stock Was Down 5.5% Today
Shares of Marqeta (NASDAQ: MQ) fell 5.5% on Thursday, closing at $6.68. New analyst coverage and the latest interest rate hike by the Fed led to the selling pressure. The stock is down 61% year to date.
Marqeta is a fintech that provides payment infrastructure that allows businesses to issue payment cards and process transactions. The stock, as well as several others in the payment industry, finished Thursday's session in the red. A big negative catalyst for Marqeta and these payment stocks was the Federal Reserve's announcement Wednesday afternoon that it would raise interest rates by another 75 basis points.
This was the third straight 75-basis-point hike, and Fed Chair Jerome Powell indicated that more are coming until inflation starts moving down. But the Fed also acknowledged that there could be some "pain," as the economy will slow down. Generally speaking, this is not good news for companies that rely on payments and consumer spending, thus the sell-off across the industry.
Source Fool.com
